Biggest ETF Launches Of The Year

Launching an ETF is very much like planting a seed—a new fund takes time to bloom and grow. But every once in a while, we run into true magic beans that go from seed to billion-dollar trees almost overnight.

Each of these ETFs has an interesting story behind their quick success.

The first thing we can say about them is that none of them is exactly your run-of-the-mill new launch, coming from a small new issuer trying to carve a niche into a crowded market. These are all new funds by well-established brands—brand recognition goes a long way in helping distribute a new strategy.

More importantly, these funds each benefited from unique circumstances that translated into massive asset growth in a short amount of time. Their magic is in the details.

XLC represented an entirely new sector following changes to the Global Industry Classification Standard used by S&P Dow Jones Indices and MSCI that took effect in September. GICS changes don’t come about all that often, so XLC came to market with fanfare and plenty of attention.

Five of the ETFs in this top-10 list relied on another recipe for overnight success. It’s one we’ve come to call “BYOA” (bring your own assets).

J.P. Morgan and John Hancock both brought to market competitively priced, core-type strategies that weren’t particularly innovative, and that competed in segments densely populated by some serious heavyweights from firms like iShares and Vanguard.